Fuel Contracts
Joined: Aug 2008
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From: Polar Route
Gotta put it somewhere... How about all those widebodies sitting on the aprons and taxiways in Hong Kong? That’ll make them heavier for when the season’s first typhoon blows through. Not a serious suggestion!
Joined: Jan 2013
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From: Right hand seat of a 777
Joined: Dec 2005
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From: Hong Kong
I wonder what price we are paying for fuel right now because oil at the moment is negative $38 . I never thought that I would see that
- The May US WTI contract fell $55.9, or 306%, to settle at a discount of $37.63 a barrel after touching an all-time low of -$40.32 a barrel
Joined: Mar 2006
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From: Australia
― George W. Bush
Joined: Apr 2002
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From: HK
even worse, they will have hedged c 50-70% of expected fuel requirements. As so little flying is being done, that means they need to buy oil at the hedged price that they won’t even be using, ie they are probably now hedged around 200% of fuel...
Joined: Aug 2011
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From: UK
You can’t blame decisions made before the pandemic for there outcome now.
Joined: Aug 2008
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From: Polar Route
True, but maybe CX should have learned their lesson about fuel hedging after losing $4B USD in the last five years and just stick with the spot prices???
Joined: Aug 2007
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From: Asia
AA does not hedge fuel at all, their CEO says it is just not worth it in the long run. Based on the 4B USD we recently lost plus the losses that are coming, I would say he is right. CX has lost more money through their hedging department than they have ever gained. The fact that these people are still employed while continuing to lose billions of dollars for the airline is gross negligence.
Joined: Mar 2019
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From: FUMOD
Interesting to note that the fuel hedging loss was equal to 16 months worth of the $2billion per month we are supposedly losing. That’s quite a lot!
AA does not hedge fuel at all, their CEO says it is just not worth it in the long run. Based on the 4B USD we recently lost plus the losses that are coming, I would say he is right. CX has lost more money through their hedging department than they have ever gained. The fact that these people are still employed while continuing to lose billions of dollars for the airline is gross negligence.
Joined: Aug 2008
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From: Polar Route
Joined: Dec 1998
Posts: 223
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AA does not hedge fuel at all, their CEO says it is just not worth it in the long run. Based on the 4B USD we recently lost plus the losses that are coming, I would say he is right. CX has lost more money through their hedging department than they have ever gained. The fact that these people are still employed while continuing to lose billions of dollars for the airline is gross negligence.
Joined: Aug 2008
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From: Polar Route
It is likely that a certain HK company may have lost more in fuel hedging in the past 5 years (and the next two or three to come) than they have probably earned in profits since the mid 80's. Fair to say that decades of effort and dedication of it's long suffering staff have effectively been rendered worthless. Oh, the Swire family is still amongst the richest in the UK however.